Companies Act 2014 section 836

Personal liability for debts of company subject to restriction

Section 836 deals with the personal liability of officers of a company that continues to trade without meeting the required capitalisation requirements after being notified that one of its directors or secretaries is a restricted person.

• Where a company receives notice that a director or secretary is restricted but continues to trade without meeting the capitalisation requirements within a reasonable period, and is later wound up unable to pay its debts, this section applies.
• On application by the liquidator, a creditor, or a contributory, the court may declare an officer of the company personally liable, without any limitation, for all or part of the company's debts and liabilities.
• Personal liability applies only where the officer held office during the period of non-compliance and knew, or ought to have known, that the company had received the restriction notice.
• The court retains discretion to grant full or partial relief from personal liability where it considers it just and equitable to do so, subject to any conditions the court sees fit.